Deposit $4000 in the bank. Make out a deposit ticket. Place the deposit ticket and the currency in the pass book and take it to the bank. Your teacher will make the entry in the pass book or direct some pupil to do it. Record the deposit on the left check stub and add it to the right check stub like the illustrations on pages 98 and 100, or the method illustrated on page ii of the appendix may be used. No entry should be made in the cash book for a deposit. Why? Make a memorandum of this agreement in the journal. Write a check to pay for one month's rent. Fill out stub No. 1. Write check No. 1 and detach it. Make the entry in the cash book. Place the check in the Bank envelope. In actual business the check would be given to L. M. Boyce, who would indorse it and cash it or deposit it. The check would be kept at the bank until the end of the month when it would be returned to you with the bank's statement. The Bank envelope represents the bank's file of checks. June 2. Buy of the Hart Canning Co., Hart, Mich., on account: 120 doz. Canned Peaches Make the entry in the purchase book. Use but one line. June 3. Buy of E. B. Webster & Co., Chicago, on account: Make out the invoice at the selling price. Should it be receipted? Why? Enter in the sales book. June 5. Buy of C. N. Ray & Co., New York, for cash: 1200 lb. Coffee 840 lb. Tea Make the entry in the purchase book. Write the check to pay for this invoice. Make the entry in the cash book debiting C. N. Ray & Co. June 6. Sell J. E. Fritz, City, on account: 36 doz. Canned Peaches 8 cases Baking Powder 12 cases Starch Make out the invoice and make the entry. June 8. Receive of L. N. Noyes, cash, on account, $50. Take the currency from the Incoming Currency and put it in the Cash Drawer. You must do this each time cash is received. Make the entry. Give him a receipt. June 8. Buy of the Baum Stationery Co., blank books and stationery, for cash, $16.75. Write a check in payment. Make the entry. What did you do with the check? Did you bring the balance forward from check stub No. 2? Have you subtracted the amount of this check from it? June 9. Buy of B. J. Johnson & Co., Milwaukee, on the terms, 2/10, n/30: 150 bx. Soap 75 cases K. Cleanser Make the entry. June 10. Sell S. D. Felton, Peoria, Ill., for cash: 120 lb. Coffee at 35¢ Make out the invoice and receipt it. This is not a sale to a regular customer. Enter it in both the sales book and in the cash book. Check it in both places. Take the currency from the Incoming Currency and place it in the Cash Drawer. June 11. Pay the Hart Canning Co. $150 on account. Write the check and make the entry. June 12. Sell J. W. Roth, Tiffin, Ohio, on account: 10 cases Raisins 7 cases Baking Powder 30 doz. Canned Corn 18 doz. Canned Peaches Make out the invoice and make the entry. June 13. Deposit $50. Make out the deposit ticket and take it with the currency to the bank for entry. Make the necessary records in the check book. June 15. Sell Chas. Orth, City, on account: 360 lb. Coffee at 35¢ Make out the invoice and make the entry. First Report. Prove cash and make a report. To Prove Cash. Add in pencil each side of the cash book and find the difference. This is the cash balance. Do not rule the cash book. In actual business cash is proved daily. In many business houses it is also balanced daily. But the number of daily cash transactions in this practice work is so few that is is not necessary to prove cash and balance it daily. Count the currency in the Cash Drawer. The amount in the Cash Drawer and the balance in the bank after adding the last deposit should equal the cash balance. If the cash does not prove, compare the cash received with the amount deposited and the amount on hand in the cash drawer. Compare the check stubs with the cash payments. Take a report blank from your envelope. Fill out the cash proof. Take the papers from your Outgoing Papers envelope and put all the paid invoices together and all the unpaid together. Arrange each in the order of the dates. List the paid invoices on the report and find the total. List the unpaid invoices and find the total. Do the same with the receipts. List the checks from the Bank envelope and find the total. Hand your report, your Outgoing Papers envelope, and your Bank envelope to your teacher for correction. He will return your Bank envelope with the checks to you. The other papers will be kept if they are correct. You are now expected to make out the necessary papers and to make the entries and records for each transaction without any special instructions. Every new transaction will be explained. June 16. Receive of J. E. Fritz his note for $60, payable 10 days. after date, with interest at 6%. Make the entry in the journal. What account should be debited? What account should be credited? June 17. Buy of C. N. Ray & Co., New York on the terms 2/10, n/30: 6500 lb. Sugar June 18. June 18. June 19. Receive of J. W. Roth, cash on account, $75. Sell J. C. Somers, City, on the terms, 2/10, n/30: Sell James Orton, City, the following goods. Terms: Cash $150; note at 30 days with interest at 6% for $100; balance on account: 40 doz. Canned Corn 30 doz. Canned Peaches 50 bx. Soap 25 cases K. Cleanser 20 cases Oat Flakes Make three entries for this transaction. Debit James Orton in the sales book for the entire invoice. Enter the cash received in the cash book to his credit. Credit him in the journal for the note received. The difference between the debit and the sum of the two credits is the amount on account. No entry is necessary for this as the ledger will show this difference. June 19. Give B. J. Johnson & Co. a check for their invoice of the 9th, less 2% discount. How much do you owe B. J. Johnson & Co.? For how much must you debit B. J. Johnson & Co., to balance their account? In theory, how much do B. J. Johnson & Co. return to you because you have paid within 10 days? Is the discount a profit or a loss to you? For how much should the check be written? Make two entries in the cash book. Do the entries prove with the amount of the check? June 20. June 20. June 22. Sell C. I. Johns, Greenville, Mich., on account: 1400 lb. Sugar 12 cases Baking Powder 10 cases Raisins Deposit $200. Buy of J. B. Kern & Co., City, on account, 30 days: 150 bbl. Flour June 23. Give the Fischer Furniture Co. a check for $43.25, in payment of the following: 1 Roll-top Desk, $27.50 1 Office Chair, $6.25 1 Table, $9.50 These are not items of expense. They will be used for carrying on the business, but are assets of the business. As they are used they will become of less value because of depreciation. This depreciation is a loss. Debit Furniture and Fixtures account for the amount of the check. do June 24. Sell J. E. Fritz, City, on account: June 25. 25 cases Macaroni 25 bbl. Flour 13 cases Starch Give the Gross Coal Co. a check for $15.45, for 3 tons coal at $5.15. Is this merchandise? Why? June 26. Receive of J. E. Fritz, cash for his note of the 16th and interest. Make two entries. What account was debited when you received this note? June 27. Receive of J. C. Somers cash for his purchase of the 18th, less 2% discount. How much does Mr. Somers owe? How much cash is received? Does he owe anything after he has paid the cash? For how much must his account be credited? In theory, how much you pay him back? What account should be debited for the discount? Is it a profit or a loss to you? June 29. Give E. B. Webster & Co. a check for $350, on account. June 29. June 30. June 30. C. I. Johns, Greenville, Mich., sends a check for $100 on account, and orders the following: Terms: on account: 25 cases Macaroni 30 bx. Soap Student and Robert Parker each withdraw $50 from the business by check, for personal use. Give Central Cartage Co. a check for $62.25, for freight and drayage for the month; $36.10 of this is for freight and drayage on goods bought, and $26.15 is for making deliveries of goods sold. Charge the $36.10 to Merchandise as it adds to the cost of the goods. Charge the $26.15 to Expense as it is an expense of carrying on the business. June 30. Deposit all the cash on hand in your Cash Drawer. Second Report. Prove your cash and make a report. Your report should show the items and total of each of the following: Hand in your report, your Outgoing Papers envelope, and the Bank envelope. Present your books of entry and your check book to your teacher for approval. CLOSING WORK Study the closing of the books of entry on pages 80 and 81. 1. Balance the cash book and bring the balance down in the last column. 2. Close the sales book. 3. Close the purchase book. 4. Open ledger accounts, three on a page, in the following order: Accounts with customers (Leave one-third of a page for a new account for July). Cash Notes Payable |